Assume that the business in Exercise 7-9 maintains a perpetual inventory system. Determine the cost of merchandise sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method. Present the data in the form illustrated in Exhibit 3.
Answer:
Cost of Merchandise Sold Unit Total Unit Total Total Quantity Cost Cost Quantity Cost Cost Quantity Unit Cost Cost Jan. 14,000 20.00 80,000 Apr. 192,500 20.00 50,000 1,500 20.00 30,000 June 30 6,000 24.00 144,0001,500 20.00 30,000 6,000 24.00 144,000 Sept. 21,500 20.00 30,000 3,000 24.00 72,000 3,000 24.00 72,000 Nov. 15 1,000 25.00 25,0003,000 24.00 72,000 1,000 25.00 25,000 Dec. 31 Balances152,000 97,000